Over the past two decades, technological advancements and widespread internet access have significantly impacted how we live, shop, and interact. This shift has also transformed how we manage our finances, with traditional banking models evolving rapidly.
Innovation Masters: Guerrilla banking – Physical distribution without branches
Decline of physical bank branches in the U.S.
A recent report from Self, a financial technology company dedicated to helping individuals build credit, explores how consumer banking has changed since 2000. The findings paint a clear picture of a banking industry in decline, particularly regarding the number of physical branches.
Shocking bank branch closures: 6.5% Decrease since 2012
Since 2012, the number of bank branches in the U.S. has dropped by 6.5%, with projections suggesting that by 2030, the country may see fewer than 16,000 branches, a number not seen since 1965. If current trends continue, physical bank branches could completely disappear by 2034. The report highlights that by 2030, each branch may serve over 22,600 people—a staggering increase from 2020’s figure.
The rise of online banking and mobile banking trends
As brick-and-mortar banks dwindle, more Americans are turning to online banking. The data shows that 34% of Americans have opened an online-only bank account in the last year, with more than half believing that digital banks will outnumber traditional ones. However, security concerns remain, as 45% of respondents worry about the safety of their accounts when banking online.
Mobile banking growth: 29 million Bank of America customers
The rise of mobile banking also signals a significant shift. For example, Bank of America has seen its mobile banking user base grow to 29 million in the past decade, up from just 4 million.
What the future holds for traditional banks
As the number of physical branches declines, and more Americans embrace digital banking, the question remains: what does the future hold for traditional banks?
Read the report on Self's website
